Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 11, Problem 11.32BP
To determine
To journalize: The liabilities transactions.
Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.
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Jan. 9, 2023
Purchased computer equipment at a cost of $11,000, signing a six-month, 7% note
payable for that amount.
Recorded the week's sales of $68,000, three-fourths on credit and one-fourth for
cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold.
Jan. 29, 2023
Feb. 5, 2023
Sent the last week's sales tax to the state.
Jul. 9, 2023
Paid the six-month, 7% note, plus interest, at maturity.
Aug. 31, 2023
Purchased merchandise inventory for $3,000, signing a six-month, 11% note
payable. The company uses the perpetual inventory system.
Accrued warranty expense, which is estimated at 2% of sales of $602,000.
Dec. 31, 2023
Dec. 31, 2023
Accrued interest on all outstanding notes payable.
Feb. 28, 2024
Paid the six-month 11% note, plus interest, at maturity.
Selected transactions of Shadrach Computer Corporation during November and December of 2016 are as follows:
November Transactions:
Nov.
1
Borrowed money from the bank by issuing a non-interest-bearing, $40,000, 90-day note. The note is discounted on a 12% basis.
9
Sold 100 computers with a 1-year assurance-type warranty for $5,000 each on credit (ignore cost of goods sold). Past experience indicates that warranty costs average $125 per computer.
12
Sold 100 software packages at $300 each on credit (ignore cost of goods sold). With each software package, Shadrach offered a premium in the form of a USB drive for the return of one proof of purchase. The offer expires June 30, 2017. The cost of each USB drive is $5, and Shadrach estimates that 80% of the premiums will be redeemed; therefore, 80 USB drives were purchased on credit.
20
Paid $2,900 in fulfillment of the warranty agreement on several of the computers sold on November 9.
30
Accrued…
Total sales for 2021
Credit sales
Sales returns (credit sales)
It is the practice of the business to provide 3% of net credit sales as allowance for douteful accounts
During the year the business has written off $8,700 as bad debts and has collected
$1,450 which was written off in the perious year.
The business show closing balances for 2020 in
Accounts Receivable
Allowance for bad debts
Opening balance
Allowance for 800
sales
1,465,000
1,185,000
36,000
Please find out the closing balance in both Accounts Receivable and in Allowance for Bad Debts accounts
for 2021
opening balance
Accounts Receivable
Closing balance
$345,600
21,450
Accounts Receivable
345,000 Allowance for BDD
1,450 Cash
1,185,000 closing balance
1,531,450
1,521,300
Allowance for Bad debts a/c
8,700 opening balance
48670 Bad debts exp
Acounts receivable
57,370
Topening balance
8,700
1,450
1521300
1.531.450
21,450
34,470
1,450
57,370
48,670
net credit sales
bad debt exp provision is 3%
Accounts Receivable
Sales
saes…
Chapter 11 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QCCh. 11 - Prob. 10QC
Ch. 11 - Prob. 1RQCh. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Determining current versus long-term liabilities...Ch. 11 - Prob. 11.2SECh. 11 - Prob. 11.3SECh. 11 - Accounting for a note payable On December 31,...Ch. 11 - Prob. 11.5SECh. 11 - Prob. 11.6SECh. 11 - Computing payroll amounts considering FICA tax...Ch. 11 - Prob. 11.8SECh. 11 - Prob. 11.9SECh. 11 - Prob. 11.10SECh. 11 - Prob. 11.11SECh. 11 - Accounting treatment for contingencies Fernandez...Ch. 11 - Prob. 11.13SECh. 11 - Recording sales tax Consider the following...Ch. 11 - Prob. 11.15ECh. 11 - Recording and reporting current liabilities...Ch. 11 - Journalizing current liabilities Erik OHern...Ch. 11 - Prob. 11.18ECh. 11 - Recording employer payroll taxes and employee...Ch. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25APCh. 11 - Prob. 11.26APCh. 11 - Journalizing liability transactions T he following...Ch. 11 - Journalizing liability transactions The following...Ch. 11 - Prob. 11.29APCh. 11 - Prob. 11.30BPCh. 11 - Prob. 11.31BPCh. 11 - Prob. 11.32BPCh. 11 - Prob. 11.33BPCh. 11 - Prob. 11.34BPCh. 11 - Prob. 11.35CPCh. 11 - Prob. 11.1CTDCCh. 11 - Sell-Soft is the defendant in numerous lawsuits...Ch. 11 - Prob. 11.1CTEICh. 11 - Derails about a company's liabilities appear in a...Ch. 11 - Prob. 11.1CTCA
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